How it works
What this calculation includes
An annual salary is a fixed amount for a year. An hourly rate spreads that amount over the hours worked. Dividing the salary by the total paid hours gives the rate that would produce the same annual total.
Paid hours per year are the weekly hours multiplied by the paid weeks. A 40-hour week over 52 paid weeks is 2,080 hours. A salary of $52,000 over 2,080 hours is $25.00 an hour.
The other figures divide the same salary a different way. Weekly pay divides by paid weeks, biweekly pay is two weeks of that, monthly pay divides by 12, and daily pay divides weekly pay by the days per week entered. Hourly pay is rounded half up to the cent.
Salary to hourly
In words Hourly pay is annual salary divided by paid hours in the year.
- Hourly rate
- Annual salary
- Hours per week
- Paid weeks per year
Example
- Annual salary: $85,000.00
- Hours per week: 40
- Paid weeks: 52
- Hours per year = 40 × 52 = 2080
- Hourly = $85,000.00 ÷ 2080
Hourly rate: $40.87
Worked example
Using the default inputs on this page.
- Annual salary
- $65,000.00
- Hours per week
- 40
- Paid weeks per year
- 52
- Days per week
- 5
Equivalent hourly rate
$31.25
$65,000 a year over 2080 paid hours
Questions
What are paid weeks per year?
The number of weeks the salary covers. If every week is paid, including paid time off and holidays, enter 52. If the salary covers fewer weeks, enter that number and the hourly rate rises to match.
Is the result before or after tax?
Before. The salary you enter is treated as gross pay, and every figure shown is gross.
How is daily pay figured?
Weekly pay is the salary divided by paid weeks. Daily pay is weekly pay divided by the days per week you enter.
Does this include overtime?
No. Every paid hour is counted at the same rate. Overtime rules, bonuses and unpaid time off are not modeled.
Sources
- Fact Sheet #22: Hours worked under the Fair Labor Standards Act U.S. Department of Labor, Wage and Hour Division. Retrieved 2026-10-12.